Lexus compact to be called CT

The names also indicate that the compact will all be hybrid models, with the model names indicating the powerplants it will get.

The base CT200h will probably use a modified version of the Prius' 1.8 litre engine, using Toyota's standard Hybrid Synergy Drive electric motor system. The CT300h might get a 2.4 litre four cylinder engine, producing 187bhp, while the top-of-the-range CT400h will have a 3.5 litre powerplant found in several other Toyota models, which gives it enough performance to rival that of the Audi S3 and BMW 135i.

Lexus is expected to show a concept version of the CT compact hatchback at the Frankfurt Motor Show, while production is set to begin in early 2010.